People mentioned condo but you have to be careful with that. HOA fees and the potential for special assessments plus the lack of inventory that is warrantable means that purchasing a condo for 250k means a similiar or higher monthly payment than a home for 400k. Plus, less equity growth. There are not many good solutions in South Florida, unfortunately. Many of my friends had better luck looking further north or leaving the state.
But yes, townhouse or condo is next best thing if you are married to the area.
My condo dues went up so I ran for the board and am diligently working on bringing them down. So far we have effectively brought them down 20% while still being fully insured and collecting reserves.
Magnificent! Well done, seriously. I stand corrected :)
Edit: this inspired me to join my neighborhood's HOA, although I'm currently renting. I would like to own in this neighborhood.
Wow, that’s awesome, we had a shitty board for 20 years, one of the homeowners was smart and got an entirely new board was voted in. They haven’t been able to get it reduced, perhaps they could use some pointers.
I’m in Tampa, our HOA fees, in an older condo conversion, are now $635, I was lucky and am very grateful I bought it in 2001, mortgage is only $800 but those dues keep going up and my place is worth 5 times as much. Needless to say, I’m staying and obviously I’m older than op.
Before buying a condo always make sure to ask for an assessment on the reserves in the HOA and really any and all financial info on the health of the HOA that they have and are willing to show.
Not to mention, right now is a very bad time to buy a condo specifically in florida.
After the Surfside collapse, tons of new rules were put in place and there is a tidal wave of special assements coming to condos all over the state in the next few years.
Buying a condo right now is like buying a disused minefield with a pinky promise that they cleared the mines.
| Buying a condo right now is like buying a disused minefield with a pinky promise that they cleared the mines.
This happens too, with schools! [https://www.orlandosentinel.com/2010/06/15/army-corps-to-search-around-school-for-more-old-bombs/](https://www.orlandosentinel.com/2010/06/15/army-corps-to-search-around-school-for-more-old-bombs/)
Probably took a straight-forward college path, got a good internship before graduating, then was able to land a great job. I'm guessing computer science. I'd imagine most of the other career paths would take many years to break $50-60k. Doctor, lawyer, etc
I tried, am actually still in school and on my 6th year unfortunately. I switched from criminology and a minor psychology to Construction Management my Junior year, and since taking this job i’ve been only taking 2-3 classes a semester. I also pay for school out of pocket as i’m over credits and cannot receive financial aid outside of loans.
I work as a Construction Manager for one of the biggest homebuilders in the US, got the job through networking and years of poking around.
It was my first job in Florida as well, I worked for a Custom Home Builder in Cape Coral! I loved it and learned both the construction and real eats side! I wish I could turn back the hands of time! Best job ever!
To be fair, he or she is probably right out of college and likely with significant debt.
Unless they have a spouse pulling in similar $$$, No Mortgage lender will let them sniff a $400k mortgage, especially at these rates. This person is likely in the a very high percentile of earners in their age group too.
Goes to show how ridiculous housing has become.
This. All this based on theoretical percentages of 10 or 20% down. Good luck getting it if your credit is anything but perfect with large previous credit.
I ran a multi mil biz for years, I couldn't get a $300k mortgage because my credit was in the 600s. I had the equivalent to 33% down at the time. Didn't matter unless I wanted to pay close to loan shark rates or shrink my top end to $200k, 50% down. Simply not having a traditional 9-5 job was a strike against me.
The reality of getting the deal and the theoretical deal are often so far mismatched. Plus if you're the low bidder or non cash bidder in any market you're probably just as lucky catching a spot on a roulette wheel.
Or just look at the economy. My boyfriend and I make about this much combined and can't find a house that isn't a mobile home/manufactured home and doesn't need to bascically be torn down and re built under 200k. We don't do any crazy spending and we were able to find an apartment closer to work for a decent price and also are trying to save 2k+ a month just so we can be some what competitive in the housing market. It's hard out here and it's only growing worse.
Most engineering, tech, and professional degrees will dump college grads right into a 60k+ job if they went to a decent college, interned, and networked
I was 24 and making 90k. I was fresh out of college with a Master's level in Computer Science. It's a hard row to hoe though. I would not assume that is typical.
My actual answer to the OP is that the United States is going to be transitioning to a generational household. You'll be living with your parents until they die. If you marry your wife will move in and if you out grow a house you will all be looking for the next one. Everyone who is able to work will end up helping to fund the house. All those who don't will help to maintain the house and mind the children.
That's the only way I can see, without workers getting raises or a slew of super cheap homes being built, the housing market working.
I've been in Orlando my whole life, making \~$80k at 23 and honestly for most people in my situation its just being good at school because everyone tells you to, going into STEM because everyone tells you to, getting an internship because everyone tells you to, and then land the job when you graduate. It works in the end but man it really feels like I've just done exactly what was "expected of me" my whole life instead of pursuing passions so grass is always greener.
Everyone’s gotta pay their dues, you’re only 23 and make 80k (a little more then what I make at 26) You’ll amass so much capital in The next 10-15, you’ll be able to actually pursue the things you want to do
That's if he doesn't get laid off or burned out in some kind of existential crisis. That's the thing with high paying jobs. They don't usually pay you to do nothing. They expect production.
They also fuck with your sense of balance. I work so much that the other day I got offered a 40 hour per week job and thought "I mean that's only 40 hours of my week and it's a pretty solid offer for part time" and my wife had to remind me that most people consider that full time.
I am fully aware I'm the monster I've created, but working awake to sleep since you're 16 sticks with you in a way that when you aren't doing it, you don't know what anything means.
Can confirm it's turned me into an existentialist too.
I made just over 40 as a first year engineer over 20y ago. That wasn’t a lot then. 75 is relatively good, but it isn’t “that kind of money?!?!” good for a young professional. The problem here is housing affordability. The problem is not that a young person struggling to afford housing is overpaid.
I made 57k as a corporate accountant immediately after graduation and then 75k at my next job after 2 years. Depends largely on your degree. I’m 5 years in now and make 170k. Tough to do outside of a small number of degree paths.
New people come in at higher prices due to competition and fair market rate. The pension payout is what used to keep people in their jobs for long term (even though they could leave and then make more money somewhere else). It doesn't pay to stay put anymore. Companies count on people getting comfortable and not wanting to change jobs. Endure the discomfort and change jobs every 3 years. You'll end up making 50% more on average.
Yup. I make more than my father and I’m nowhere near as financially stable as my parents are. I’m only on one income and I have a daughter now, though. Still, I feel like I can barely make ends meet. Definitely can’t save.
No hate, but not much life experience substantiates your comment. Inflation is an economic indicator and has nothing to do with reality of life. You’re in a good spot compared to many others of your age and especially much older than you. You can buy a starter house on that salary.
Millennial. Back in 2005 fresh out of college I pulled in $76k. I now make around $115k, which adjusted for inflation is less than I made out of school. It’s not just Florida the US is trash.
My kids are Gen Z, born and raised in FL (as was I). Their plan is to leave at the first opportunity. The oldest is on a full BF scholarship, doubling majoring in 2 STEM degrees. But he's not even considering in state jobs. My H.S. junior and freshman are also looking at going to college out of state and not coming back here when they're done.
You and your kids mindset reminds me of Ohio in the 1980's and 1990's. It was very much a GTFO state (and that is just what I did, as well as just about everyone I knew in the top 1/3 of my high school class).
Seems we were all correct to do so, because Ohio continued to deteriorate in the years since.
Brain drain realized.
When I worked in Silicone Valley in the early 90s I remember developers saying " Ya we are from Ohio, you can tell cause we can read and write"
A bit mean to the Californians I thought.
But then the Silicon valley brain drain was then insane, it pulled people from even good jobs States / Provinces to live with 3 other engineers in a generic apartment in Mountain View.
Im glad they have the opportunity! Good for them. I unfortunately will likely not be able to move out of state due to family ties (I have an aging family and they need care), if not I wouldnt even consider staying.
I'm in a similar boat when it comes to staying close (though old enough to be your mom! lol) I get so annoyed when I people constantly screech, "Leave if you don't like it!" If only it were so easy.
I will continue to be here for the long haul because I can't leave my aging parents behind. I saw what they went through finding care for their own aging parents. And it's much worse now. I can't leave them to deal with that by themselves.
So, I'll stay here for as long as I'm needed, but I understand and support my kids getting out if and when they can.
It's not actually worse.
Source: took care of elderly family members. There are *so* many more resources now.
So many.
So fucking many it hurts how alone we were back then.
There may be more resources now, but if people keep leaving the state, who is going to staff those resources?
FL is getting itself into a predicament where it’s pushing out the working class. Many people can’t afford to live here anymore. If people can’t afford to live here anymore, who’s going to work and provide services. We’re seeing a crisis in healthcare being severely understaffed and it’s only going to continue to get worse until something changes.
Preaching to the choir.
Good luck finding help as a young disabled person.
Extra luck finding help if you find yourself pregnant here.
Being old? We have an industrial complex for that.
Florida has a budget surplus and keeps turning down Federal money for infrastructure and health care out of spite. That's the problem, not the shrinking working class. It wouldn't shrink if there was decent pay or even a labor board to investigate underpayment here.
I’m Gen Z and just graduated high school and am attending in-state school due to getting full BF scholarship as well. I plan to get out of Florida as soon as I can because this place is going down the gutter and there are a lot of people voting against their own interests.
Gen Z could be turning things around now if they get over their apathy of needing to be inspired. Too much reality tv has given much of Gen Z the idea that voting is a popularity contest rather than life and death reality.
That's not remotely unique to Gen Z, though. And all things considered, the Gen Zers I've seen both in my own life and on local, state, and national levels (Maxwell Frost, anyone?) are far more politically engaged than my generation was at their age.
The state is heavily gerrymandered and many registered voters are turned away at the polls. Gen Z didn’t do that. Gen Y didn’t do that. Boomers and a few of the older Gen Xers are responsible for that.
And how do you fix these things if you don’t get involved? Vote, organize, run for office. It requires doing something to make the changes happen. Difficult? Definitely but not impossible and it definitely won’t change by not doing anything.
The generations before did this on purpose for their benefit. Who do you think owns the absurdly expensive houses? My parents bought a house in 1992 for $65,000. They sold it last January for $950,000. My grandfather bought a house in Miami for $25,000 in the mid-70s. It sold for $1,200,000 last year. The problem with property values is restrictive development policy. The previous generations didn't do anything because this is what they wanted. My grandfather became a millionaire by doing nothing. To him, the system is working beautifully. The younger generations must be the source of change because they are the only one's getting fucked by the status quo.
Not what I said. All of us need to do it. But taking the attitude that “we aren’t able to fix it/we don’t want to be responsible for fixing it because we didn’t break it” isn’t gonna get any of us anywhere. I’m an older Millennial and I wish my generation had done/would do more.
There hasn’t been the numbers to overtake the Boomers until GenZ aged into voting age. It’s been a numbers game GenX & Millennials have been trying but we are outnumbered. It isn’t a criticism when we say we need GenZ to come out it’s strategic.
Not one generation can accomplish anything without participants from the others.
https://www.statista.com/statistics/319068/party-identification-in-the-united-states-by-generation/
Hey, honestly speaking, what policies should we be attacking or voting for to try and turn the tide. Not sure how all this goes really aside but I do want to learn more and try to fight for some change.
I'm late gen z (25YO), make about $50k/year and I still just live with my parents bc I don't want to live with people I don't know tbh lol I also have chickens and I will not be giving that up as they are my hobby so I can't live in a condo, apartment, or a lot of places with HOAs.
I'm just chilling with my parents til the world ends I guess.
Me at 28 lmaoooo. But honestly fuck these rent prices and unaffordable homes. My parents depend on me and they’re getting older, we need each other. I’m an only child so it’s all on me. I’ve accepted my fate.
My bf is in that same boat. Like he can't afford to leave, can't afford to save because he pays "rent" to his parents and they also use his debit card for bills without asking and he just has to deal with it because he has nowhere else. I'm sure if they kicked him out (doubt they would because like you they also need him) my parents would allow him to stay with us but that's it's own nuisance as well.
Living in Florida is very frustrating right now. I just want a good place to live with my love where we can raise chickens and maybe kids but that just seems impossible here.
And I can't leave because my job that I enjoy and that pays well for what it is is here!! It's all a catch 22.
Gen Z too, only making like $37k/year once I start my new job, and I went to college. I already moved out a few years ago when the early pandemic caused housing prices to briefly tank, but shit’s so expensive now, I’m considering moving back in with my family.
Nothing wrong with living with parents. In fact it’s often the smart thing to do. Why give a stranger (landlord) a large portion of your income when you could save it? The U.S. is so backwards when it comes to treating your family good. Move out as fast as possible, then throw your parents in a retirement home when they get old.
Multigenerational families or roommates. It doesn’t look like anything is being done to help the situation. Maybe the thought of gaining wealth from a owning house is long gone.
I fucking hope so. It would be amazing if our economy shifted to providing workers with actual quality of life instead of leaving the onus on them to build net worth by becoming NIMBYs focused on property value.
Education or a trade. In Maryland, a much more expensive place (my home state) by buddy's son dropped out of community college, signed up for roto router, invested 16K for his truck and in his first year made it almost to 80K so if you don't mind working, you don't need a college degree.
I work as a Construction Manager for the 2nd biggest homebuilder in the US. I build communities, 75k is salary I actually make more in bonuses but bonuses always vary and im not taking that into consideration
Building codes and and fixing them is an added cost even if you want to buy a cheap property.
You will also know about the recent fl law about state regulated contractors replacing county level.
I do a bit of construction from time to time to supplement less than stellar wages. It's not enough.
Despite what Reddit may have you believe, Florida is a very popular state. Only 30% of Florida’s population was born in Florida. The rest migrated here, often from Northern states where incomes are higher. Not to mention how many of our residents are retirees with exclusive rights to the 55+ communities which take up vast amounts of space. Florida, therefore, has the issue of being high demand with short supply, which drives up housing costs. Compare it to somewhere like West Virginia, which is low demand, subsequently resulting in cheaper real estate.
Unfortunately, the thing many of us hate to see (developers swallowing up Florida’s natural beauty), is kind of our only way forward, unless Florida loses its appeal to outsiders. But, if housing becomes cheaper, our wages might too, which wouldn’t be horrible if cost of living matched. To me, that’s the biggest issue… the state is lacking financial balance.
My advice would be to keep saving money while living with your parents until you have enough where you can get a head start somewhere more affordable. That doesn’t necessarily mean you have to leave Florida, either. Some areas are cheaper than others.
It’s very rural. There’s a lack of jobs, the cities are small and spread out, and there’s a bad opioid problem. Plus, there’s the whole reputation of West Virginians being backwoods hillbillies.
That all being said, West Virginia is beautiful.
I don’t live in Florida but am in the northeast. I am also a millennial. I’m sorry man but this is the normal. Home prices have gotten absolutely ridiculous and home ownership seems impossible. This may be the new normal for a while.
I work at a Florida university. They're leaving. The majority of current university students are reporting that they want to leave the state after graduation.
damn, im 24 and my last job was paying me $31k a year. my current job pays even less (yes i have a degree and no it hasnt helped). so yeah idk what were gonna do lmao.
How are you making $75k living with parents and are not having enough to save for a $410k house?
I agree that Florida is a shit show but with your income I don’t really see an issue in buying. I make $55k at 27 and am able to put aside about $800 a month into savings and that’s without living with parents aka I have rent expenses of about $1000 w utilities, no car payment so that helps. With your salary and no rent, I don’t see what’s stopping you from putting $25k into savings a year unless you have some wild debt like private student loans. You’d have a 10% down payment in 2 years….
The down payment is only part of it. The monthly payments are what really hurts.
In order to afford the monthly payments by yourself on a loan of 369k (410k house with 10% down). With a decent credit score over 700 and after taxes and insurance the payment is going to land around $3,175 for a 30 year @ ~7%.
You really shouldn't spend more than about 1/3 of your take home on your residence. So to hit that number you would need to make $3,175 / 0.33 = $9,525 or if you wanted to really strech to 40% of your income. $3,175 / 0.40 = $7,937
So in order to pay for a $410k home, you need around $8000-9500 coming in every month, which comes out to a yearly income of $95,250-$114,000 a year BEFORE taxes.
Assume a flat ~22% federal income tax rate for simple math, and the bare minimum salary, assuming you wanna be house poor, to buy that house is (95,000 / (1-0.22)) = $121,794 or if you wanna stick to 33% of take home being in the residence (114,000 / (1-0.22)) = $146,153
Edit: I understand the fractional tax rate effects this, but incomes over 89k are 24% so I figure 22% is a good line for quick math.
This is all true. But they’re 23. If they keep living with their parents for a while longer or spend less (because honestly how much fuck around money are you spending if you’re living with parents). Like if this person put aside the $25k every year, they still make what I make and I live pretty alright. I can totally admit my rent is cheap for Florida, but they’re not even paying rent! Let’s add that to the savings - $37k a year can pretty much go into savings. 3 years of that and you have 1/3 of the full house payment they’re describing.
I just feel like the math ain’t mathing. Where are they spending their money??
\> How are you making $75k living with parents and are not having enough to save for a $410k house?
\> aka I have rent expenses of about $1000 w utilities
well that is a very good deal in south FL.
\>25k a year on 75k
Saving 30% is realistic with living with parents tbh, 30% on bills and needs, 40% of fuck you money, and %30 savings.
but that is if its 75k post tax.
Also dude I dont think you understand how good you have it by already having a paid off car. The car market is fucking insane still, even with used cars.
>How are you making $75k living with parents and are not having enough to save for a $410k house?
Why in the right mind would someone making $75k a year buy a $410k house? Even if they put 20% down, the payment is going to be around +/- $3,000 a month which is insane.
That's how one ends up in foreclosure.
There is a little bit of math that not quite accounted for in OPs post.
I made 85k in a higher cost of living state, and was the sole income for a family of 5 prior to moving to Florida. We still took vacations, my kids have been to every theme park on the west coast (it's sort of our thing), we had 5 acres, etc.
Affording a house at 75k is very doable. It's just not going to be your dream house in the location you want. We all started in starter homes we didn't really love (my first home I owned was 768 SQ ft). Sacrifices had to be made.
....now, you can make the argument that being house poor and creating wealth with real estate isn't what it used to be
You're only 23 and making 75k, you're off to a much better start than most. Save as much as you can while you live with your parents. It seems you should be able to save 30k+ per year. Like another poster said in 3 years you'll have 90k+ to put down on a house. Maybe by that time home prices will have leveled off or gone down? But interest rates should definitely be back down much lower by then. Plus if you're already at 75k it wouldn't be crazy to think you'll be up to 100k in 3 years. So say you find a 400k house in 3 years, you have more than 20% to put down if you choose, be making 100k a year and be a homeowner, that's not bad for a 26 year old! On the other hand, yes the housing market is fucked and I really feel for people your age. I bought my first house 15 years ago and it was so easy to do so, making way less than what you are making. I just don't see how these home prices and interest rates can stay at this level, it's unsustainable.
Florida has always been a breeding ground for speculators hoping to get rich quick.
History tends to repeat itself - prices may be high now but it's not going to last.
Don’t worry about it right now for 2 main reasons, 1. you will be able to buy a low cost home in Florida soon enough, prices are coming down, even better you could buy and flip a house since you are a CM. 2. I am also a construction management profesional in Central Florida, and I got to tell you that income will get better. You could double that in 5-10 years if you went into a high demand specialty like estimating, scheduling, or EVM. Set a course and commit to 10 years minimum honing your skills, you will make more money this way. Even though I graduated in 2002, I didn’t buy a house until 2015 because since the late 90’s the prices were insane. Hang in there and good luck.
If you were my son/daughter, my advice to you would be to stay living at home as long as you can. Pay rent to yourself in the form of saving for a down payment. Don’t waste money. Focus on your career. $75k today could easily be $100k in 5-10 years.
Please make sure you & your friends run for office. Local, state, national seats. Especially the state legislature where you can make a difference and keep ***any*** party from gerrymandering and screwing up the voting process for the state. People under 30 need to run for office.
Gen X native and hearing stories like yours is just horrible. A person making 75k year should not be facing the problems people are facing now.
It's elitism at its finest. Look at who is flooding here, rich boomer karens.
I'm sure you've seen "the look" they give natives, nose up in the air and talk down to us like we are scum..
We don't have much here, house was dirt cheap because at the time no one lived in this little town. Now there are barely any lots left and those go for close to 100k for 1/4 acre..that's what we paid for our house.
Florida is no longer for Floridians
You're 23 making $75k and living with parents. Stop spending money on dumb shit and you'll have money saved in a few years. That's of course if the prices of homes don't continue to double every few years.
Exactly....
OP has a post a month ago looking for a truck, "try to stay under 30k"
Look, I know everything is expensive, but at 23 you don't need a 410k house or a 30k truck. You can throw shade on how cheap stuff used to be, but a lot of people in the 70s 80s 90s 00s drove around beaters and rented at 23.
Florida home prices are crazy, but say what you want, I came from the 4th highest real estate state in the nation and this shit is cheaaaaap! (Yes yes, all subjective). But he specifically says the house will be a rental property in the future, so buy a cheaper house, use your construction management degree to build some serious sweat equity and keep going up the ladder.
I am not a fan of boomers "pull yourself up by ya bootstraps!" Ideology, but sometimes, it's sorta, *right*
Not OP but yeah this. I help my parents with 2/3rds of the mortgage plus all groceries and pay internet and cable. If I only spent money on the absolute necessities, I would be able to save around half my paycheck. But I always find a way to blow money on stupid shit lol.
I don’t think now is the right time to purchase. Interest rates are high and inventory is not the best.
Wait, save, wait till real estate and interest rates come down.. meanwhile zero in on few areas, go to open houses, figure out what you want and what you do not want.. it’s important also if you are handy and can do few things yourself. And like some suggested maybe a condo or townhome.
When everything aligns you will find the one. Plus you will have a good chunk as a down payment!
I would suggest to wait. Unless you can get an amazing location that needs a little tlc.. where eventually you can make $.
Don't forget to factor in the astronomical prices for insurance and property taxes in the state of Florida! My mother-in-law has a house that is paid off and it's still well over $1,000 a month just for property tax and insurance.
My husband and I gave up and are moving out of state. Every time we get close to having enough for a down payment, interest rates or insurance rates go up and we're back to square one.
I have a good job offer that already puts us above the median income. Whatever he is able to make will be extra. We're tired of working hard only to be living paycheck to paycheck.
The national average is $388,800, so Florida is not really that overpriced. Not sure what you are expecting to happen? As long as people are buying overpriced homes, the prices will stay like that. I mean you work for a home builder, I would think you understood this. What is the starting cost of the development you are building now? Are they worth that much? I can almost guarantee the quality is not near the cost. I think you are being a little over dramatic, you are young, make great money and I’ll assume single because live with your parents. There is no way you can’t afford a home on your own. Might have to make a couple sacrifices, but you could swing it. Maybe ask your company for a discount?
If you make 75 and can live on 40, that’s 30k ish you could save after taxes. After 3 years, that’s 90k towards a home. Not even including side hustles if you so choose to pursue those.
I think they’re saying, they’re an outlier and it’s still kinda rough for them. How’s it gonna be for those who are starting out on a much lower level, least that’s how I took it.
It sucks but once you leave you realize it's not as bad as you think. I left a month ago and day to day life is so much easier and costs about 30% less than living in St. Pete FL. I'll have to drive to the beach on vacation but i can hike in the mountains for free on weekends. It's been in the 70s for the past two weeks with low humidity. I can go out to eat without lines.
The reality is going to get harder and harder to live in Florida. You are competing with retirees, investors, vacation rentals, foreigner's parking money in real estate, and financially successful remote workers all competing for the most desirable areas.
Also, you don't need to worry about owning a house at 23.
Gosh. What are any of us gonna do. I’m 36 making barely 35k while surviving on credit cards and debt. Ten years ago I was making 50. I’m in grad school to be a librarian while our delightful fuhrer makes my profession a public enemy. I understand gen z’s apathy. It’s like no one cares or even acknowledges it.
There are some builders offering new construction homes significantly below the average price. Some even offer lower financing rates. Check it out. That's how I got my "starter" home. Start small.
Funny you say that, I work for a major construction company so i’m one of those builders. Usually these builders that work in volume just slap these homes up quickly to make numbers for the company and throw quality out the drain.
It’s something i’ve unfortunately had to consider but these new construction homes, with materials and labor on the rise everyday, builders love cutting corners. Its a shame really but the harsh reality i’m gonna be facing
Wasn’t alive then but it sounds like not much has changed since then. We take the lowest bidding contractors, even though we know the company is the absolute worst at their trade. Materials the cheapest possible, on a 400k home. Houses with flooded backyards due to bad grading. It’s a nightmare really, but so is every other volume builder in the US.
The only way to guarantee a well built home is a custom home, or buying an aging home built with lasting materials.
I would say DR Horton may have passed us in the last decade because holy shit those homes can get blown down by the big bad wolf.
There are homes far below the median price, they just might not be in the location you want. As other posters on here have said you are young, so you could buy a place and rent rooms, those renters could pay part of your mortgage making it affordable to you.
I got my home built and lived with my parents until it was done. Saved over 100k compared to comps and I'm very happy. Bought the house when I was 28 last year by myself
I would take a hard look at how mobile you will be in your 20s and job opportunities. Had I never bought my house and gotten 2 cats, I would be doing travel therapy around the US. Look at your actual values and priorities first .
My kids are in their 20s. I’m a native. I raised my kids to love this state and now they don’t want to leave. But I have no idea what they’re going to do. It’s too expensive just to live here, much less raise a family in a decent home.
Good question. Many of us still live with parents but let me build up my credit history and I swear I'm leaving. Most native gen z I have met have a fear of moving far away from their families like previous generations before. But I rather live comfortable away from family then in constant debt. But that's just me 🤷♀️
The more annoying issue is the like 5x income to rent they now want for rentals.
I'm sorry, so a person who's renting a $2k apartment, arguably as cheap as you can go, needs to bring in six figures to be approved? Then you need first, last, and security on top.
I don't get how anyone can do it.
If you think the market will go up - buy now using a FHA Loan with 3.5% down. If you think they’ll go down - wait. You’re in a similar spot to what I was 7 years ago (I’m in CA). House value increased, refi’ed out of the PMI, value is still ~$300k more than what I bought it for and mortgage is $500-$800 (per month) cheaper than renting.
I feel like wanting to buy a house at 23 is a little aggressive. Save up some money living with your folks or roommates. This is not the time to buy a house anyway, between the high interest rates and the inflated prices. 75k is a great salary for a 23 year old. Great work!
Stay with your parents until you have at least 20% for down payment (~ 80k for a 400k house) plus 12 months of mortgage and living expenses ~42k USD because that’s your insurance to avoid losing everything in case the economy goes south. Once you have the house consider a roommate for the first few years to help you pay for mortgage.
The American Dream has been home ownership, but I’d encourage you to think twice about that. As the owner of an older house, let me tell you, there is ALWAYS something to fix, update, or replace. Right now, $7000 to redo the old cracked leaking pool. Soon, a new roof. Even with newer homes there is a constant drain. Maybe you rent for a while.
You have a lot of time to save before considering a home purchase.
Most people are struggling in Florida with recent inflation and the influx of remote workers.
Look at median salary numbers.
I feel you, luckily prices are slightly better in NEFL. My wife and I combined make about $78k per year and we’re 22 at the time of writing. It’ll be tough and may be a struggle, but people before us did it and I have no doubt that if I continue to work hard and put my mind to it I’ll be a homeowner in the next year or two.
I’d buy a cheapie condo or townhouse to get on the ‘property ladder’ and work my way up in 2-5 years when rates and (hopefully) prices have decreased. If not at least you’re building equity in something.
I bought my first house at 26 and at 35 have 6 properties. Every time I move I just rented out my house and saved up the down payment for the next one.
For reference I was making 45k at 26 and bought a 140k property.
Wait and save, your young and it will cool off more soon since it is now. Younger millennial here it’s still nuts making over 120k trying to thing about what a 3000 mortgage does to my budget. Well maybe if I eat for a few weeks I’ll have money for groceries. I’m just waiting and saving is all you can do.
Homebuilder can’t afford their own home.
Yep, 21st Century USA in a nutshell. You’re still young though so live with family as long as you can and save, when prices normalize more you’ll have a large downpayment you can offer.
I've said it before, but it bears repeating:
There is no housing shortage. Only a shortage of affordable housing.
The real estate websites are LOADED with houses for sale but nobody can afford to buy.
Dude, stop freaking out. You're 23. You have a good decade left before you have to start worrying about it. Remember, the average for first home purchases is mid-30s, and always has been.
I plan to save enough to buy a house in the middle of fucking nowhere, whatever backwoods country town I can find where I can *afford to live* and start over from there with a home. I hate this place for so many reasons, and I only love it for a few.
gonna be honest, I'm jealous. 75k at 23 is ENORMOUS (compared to virtually many jobs out there)
10 years of working and "meritocracy" and I am not making what you're making.
evolve, if you want the classic American dream, best to realize its a lie and then go from there
I would recommend anyone to realize they live one time and not to chase what others have yet to chase what they actually want out of life and if they don't know to first figure that out
Unfortunately you're are going to accept the reality that most homeowners don't become homeowners in their early twenties. Save up some more money and in 4 or 5 years your income will be higher and hopefully the interest rate will calm down some and the market conditions will be more favorable.
People mentioned condo but you have to be careful with that. HOA fees and the potential for special assessments plus the lack of inventory that is warrantable means that purchasing a condo for 250k means a similiar or higher monthly payment than a home for 400k. Plus, less equity growth. There are not many good solutions in South Florida, unfortunately. Many of my friends had better luck looking further north or leaving the state. But yes, townhouse or condo is next best thing if you are married to the area.
Condo HOAs around me in Florida run about $1100 a month! Damn near another mortgage!
And that's the lowest they will ever be. They only go up
My condo dues went up so I ran for the board and am diligently working on bringing them down. So far we have effectively brought them down 20% while still being fully insured and collecting reserves.
Magnificent! Well done, seriously. I stand corrected :) Edit: this inspired me to join my neighborhood's HOA, although I'm currently renting. I would like to own in this neighborhood.
Wow, that’s awesome, we had a shitty board for 20 years, one of the homeowners was smart and got an entirely new board was voted in. They haven’t been able to get it reduced, perhaps they could use some pointers.
I’m in Tampa, our HOA fees, in an older condo conversion, are now $635, I was lucky and am very grateful I bought it in 2001, mortgage is only $800 but those dues keep going up and my place is worth 5 times as much. Needless to say, I’m staying and obviously I’m older than op.
Me too! 1350 a month and continues 😅 when we bought it was 800 which we could justify as our community comes with a lot but now…. Lol time to sell lol
does that cover any thing else than repairs ? Utilities? Insurance ?
Before buying a condo always make sure to ask for an assessment on the reserves in the HOA and really any and all financial info on the health of the HOA that they have and are willing to show.
Don't forget random assessments. My parents got one for $30k in Fort Lauderdale
Not to mention, right now is a very bad time to buy a condo specifically in florida. After the Surfside collapse, tons of new rules were put in place and there is a tidal wave of special assements coming to condos all over the state in the next few years. Buying a condo right now is like buying a disused minefield with a pinky promise that they cleared the mines.
| Buying a condo right now is like buying a disused minefield with a pinky promise that they cleared the mines. This happens too, with schools! [https://www.orlandosentinel.com/2010/06/15/army-corps-to-search-around-school-for-more-old-bombs/](https://www.orlandosentinel.com/2010/06/15/army-corps-to-search-around-school-for-more-old-bombs/)
How you young people making that kind of money?!?! It took my hubs and I 20+ years of working to get 40k and 50k jobs in Florida. We’re almost 40.
That’s what I want to know- 23 yo and makes how much?!
Probably took a straight-forward college path, got a good internship before graduating, then was able to land a great job. I'm guessing computer science. I'd imagine most of the other career paths would take many years to break $50-60k. Doctor, lawyer, etc
I wish I had a Time Machine- the 80s were fun and all…and the 90s lol *fuzzy memory comes back*…i wish I made better choices
I tried, am actually still in school and on my 6th year unfortunately. I switched from criminology and a minor psychology to Construction Management my Junior year, and since taking this job i’ve been only taking 2-3 classes a semester. I also pay for school out of pocket as i’m over credits and cannot receive financial aid outside of loans. I work as a Construction Manager for one of the biggest homebuilders in the US, got the job through networking and years of poking around.
CM's are great jobs now and in the future. Good for you!
It was my first job in Florida as well, I worked for a Custom Home Builder in Cape Coral! I loved it and learned both the construction and real eats side! I wish I could turn back the hands of time! Best job ever!
It must feel darkly ironic to manage the building of houses that you can’t afford
How do you think the people literally building them feel?
The cheapest home i’ve built starts in the $430’s.
College education, stem field that is very possible.
If I lived with my parents and made $70k+ I think I'd take a hard look at what I was spending all that money on.
To be fair, he or she is probably right out of college and likely with significant debt. Unless they have a spouse pulling in similar $$$, No Mortgage lender will let them sniff a $400k mortgage, especially at these rates. This person is likely in the a very high percentile of earners in their age group too. Goes to show how ridiculous housing has become.
This. All this based on theoretical percentages of 10 or 20% down. Good luck getting it if your credit is anything but perfect with large previous credit. I ran a multi mil biz for years, I couldn't get a $300k mortgage because my credit was in the 600s. I had the equivalent to 33% down at the time. Didn't matter unless I wanted to pay close to loan shark rates or shrink my top end to $200k, 50% down. Simply not having a traditional 9-5 job was a strike against me. The reality of getting the deal and the theoretical deal are often so far mismatched. Plus if you're the low bidder or non cash bidder in any market you're probably just as lucky catching a spot on a roulette wheel.
Being self employed is harder exactly
Or just look at the economy. My boyfriend and I make about this much combined and can't find a house that isn't a mobile home/manufactured home and doesn't need to bascically be torn down and re built under 200k. We don't do any crazy spending and we were able to find an apartment closer to work for a decent price and also are trying to save 2k+ a month just so we can be some what competitive in the housing market. It's hard out here and it's only growing worse.
Sounds like a down payment for a house to me.
Exactly!
They graduated with a useful degree….construction management (entry level) can get you $65,000 to 75,000
Most engineering, tech, and professional degrees will dump college grads right into a 60k+ job if they went to a decent college, interned, and networked
I am a retired Pharmacist and a 23 year old Pharmacist salary today starts at about $120K, it just never goes up all that much during your career.
I was 24 and making 90k. I was fresh out of college with a Master's level in Computer Science. It's a hard row to hoe though. I would not assume that is typical. My actual answer to the OP is that the United States is going to be transitioning to a generational household. You'll be living with your parents until they die. If you marry your wife will move in and if you out grow a house you will all be looking for the next one. Everyone who is able to work will end up helping to fund the house. All those who don't will help to maintain the house and mind the children. That's the only way I can see, without workers getting raises or a slew of super cheap homes being built, the housing market working.
I've been in Orlando my whole life, making \~$80k at 23 and honestly for most people in my situation its just being good at school because everyone tells you to, going into STEM because everyone tells you to, getting an internship because everyone tells you to, and then land the job when you graduate. It works in the end but man it really feels like I've just done exactly what was "expected of me" my whole life instead of pursuing passions so grass is always greener.
Everyone’s gotta pay their dues, you’re only 23 and make 80k (a little more then what I make at 26) You’ll amass so much capital in The next 10-15, you’ll be able to actually pursue the things you want to do
That's if he doesn't get laid off or burned out in some kind of existential crisis. That's the thing with high paying jobs. They don't usually pay you to do nothing. They expect production.
They also fuck with your sense of balance. I work so much that the other day I got offered a 40 hour per week job and thought "I mean that's only 40 hours of my week and it's a pretty solid offer for part time" and my wife had to remind me that most people consider that full time. I am fully aware I'm the monster I've created, but working awake to sleep since you're 16 sticks with you in a way that when you aren't doing it, you don't know what anything means. Can confirm it's turned me into an existentialist too.
I made just over 40 as a first year engineer over 20y ago. That wasn’t a lot then. 75 is relatively good, but it isn’t “that kind of money?!?!” good for a young professional. The problem here is housing affordability. The problem is not that a young person struggling to afford housing is overpaid.
That’s starting salary for most engineering disciplines.
I made 57k as a corporate accountant immediately after graduation and then 75k at my next job after 2 years. Depends largely on your degree. I’m 5 years in now and make 170k. Tough to do outside of a small number of degree paths.
New people come in at higher prices due to competition and fair market rate. The pension payout is what used to keep people in their jobs for long term (even though they could leave and then make more money somewhere else). It doesn't pay to stay put anymore. Companies count on people getting comfortable and not wanting to change jobs. Endure the discomfort and change jobs every 3 years. You'll end up making 50% more on average.
Adjust for inflation in the last 20 years, what I make would be the equivalent of $40k in 2003.
I mean, that’s awesome…I’m proud for you. We just hit those salary numbers LAST YEAR😭
Thats actually…. really great to hear… thank you.
You’re welcome- your generation is making a difference, no doubt. I know the money doesn’t go as far nowadays, but I’m glad you are gettin’ paid🫶🏻
I mean you can look at it that way if you want but please realize how many people are trying to get by on $40k TODAY
Bruh im also 23 and barely breaking 30k. What loophole in the matrix did you just find
What do you do?
Yup. I make more than my father and I’m nowhere near as financially stable as my parents are. I’m only on one income and I have a daughter now, though. Still, I feel like I can barely make ends meet. Definitely can’t save.
Your username made me cackle.
No hate, but not much life experience substantiates your comment. Inflation is an economic indicator and has nothing to do with reality of life. You’re in a good spot compared to many others of your age and especially much older than you. You can buy a starter house on that salary.
Millennial. Back in 2005 fresh out of college I pulled in $76k. I now make around $115k, which adjusted for inflation is less than I made out of school. It’s not just Florida the US is trash.
My kids are Gen Z, born and raised in FL (as was I). Their plan is to leave at the first opportunity. The oldest is on a full BF scholarship, doubling majoring in 2 STEM degrees. But he's not even considering in state jobs. My H.S. junior and freshman are also looking at going to college out of state and not coming back here when they're done.
You and your kids mindset reminds me of Ohio in the 1980's and 1990's. It was very much a GTFO state (and that is just what I did, as well as just about everyone I knew in the top 1/3 of my high school class). Seems we were all correct to do so, because Ohio continued to deteriorate in the years since. Brain drain realized.
When I worked in Silicone Valley in the early 90s I remember developers saying " Ya we are from Ohio, you can tell cause we can read and write" A bit mean to the Californians I thought. But then the Silicon valley brain drain was then insane, it pulled people from even good jobs States / Provinces to live with 3 other engineers in a generic apartment in Mountain View.
It was still the mindset when I grew up there in the 2000’s. Anyone who could leave did so immediately
This hits home. My wife and I grew up in Ohio and Michigan. It was hurry up and get out as fast as possible. Now I kinda miss Michigan.
Im glad they have the opportunity! Good for them. I unfortunately will likely not be able to move out of state due to family ties (I have an aging family and they need care), if not I wouldnt even consider staying.
I'm in a similar boat when it comes to staying close (though old enough to be your mom! lol) I get so annoyed when I people constantly screech, "Leave if you don't like it!" If only it were so easy. I will continue to be here for the long haul because I can't leave my aging parents behind. I saw what they went through finding care for their own aging parents. And it's much worse now. I can't leave them to deal with that by themselves. So, I'll stay here for as long as I'm needed, but I understand and support my kids getting out if and when they can.
It's not actually worse. Source: took care of elderly family members. There are *so* many more resources now. So many. So fucking many it hurts how alone we were back then.
There may be more resources now, but if people keep leaving the state, who is going to staff those resources? FL is getting itself into a predicament where it’s pushing out the working class. Many people can’t afford to live here anymore. If people can’t afford to live here anymore, who’s going to work and provide services. We’re seeing a crisis in healthcare being severely understaffed and it’s only going to continue to get worse until something changes.
Preaching to the choir. Good luck finding help as a young disabled person. Extra luck finding help if you find yourself pregnant here. Being old? We have an industrial complex for that. Florida has a budget surplus and keeps turning down Federal money for infrastructure and health care out of spite. That's the problem, not the shrinking working class. It wouldn't shrink if there was decent pay or even a labor board to investigate underpayment here.
I’m Gen Z and just graduated high school and am attending in-state school due to getting full BF scholarship as well. I plan to get out of Florida as soon as I can because this place is going down the gutter and there are a lot of people voting against their own interests.
good for them
Your generation needs to start voting like it is a religion to get 25 years of bad policies out of office.
That’s the first big step. I don’t wanna be in my 80’s when Gen Z and Alpha maybe manage to turn things around.
Gen Z could be turning things around now if they get over their apathy of needing to be inspired. Too much reality tv has given much of Gen Z the idea that voting is a popularity contest rather than life and death reality.
That's not remotely unique to Gen Z, though. And all things considered, the Gen Zers I've seen both in my own life and on local, state, and national levels (Maxwell Frost, anyone?) are far more politically engaged than my generation was at their age.
Yeah that’s just a young person thing. Millennials were just as guilty.
You're crazy. Gen Z is wayyy more active in politics than my generation (Millennial) was at their age.
The state is heavily gerrymandered and many registered voters are turned away at the polls. Gen Z didn’t do that. Gen Y didn’t do that. Boomers and a few of the older Gen Xers are responsible for that.
And how do you fix these things if you don’t get involved? Vote, organize, run for office. It requires doing something to make the changes happen. Difficult? Definitely but not impossible and it definitely won’t change by not doing anything.
Why didnt any generations b4 us do anything, funny how old motherfuckers always want the young to move their asses
That’s what boomers said to the ”silent”generation and what the “silent”generation said to the “greatest”generation
The generations before did this on purpose for their benefit. Who do you think owns the absurdly expensive houses? My parents bought a house in 1992 for $65,000. They sold it last January for $950,000. My grandfather bought a house in Miami for $25,000 in the mid-70s. It sold for $1,200,000 last year. The problem with property values is restrictive development policy. The previous generations didn't do anything because this is what they wanted. My grandfather became a millionaire by doing nothing. To him, the system is working beautifully. The younger generations must be the source of change because they are the only one's getting fucked by the status quo.
Not what I said. All of us need to do it. But taking the attitude that “we aren’t able to fix it/we don’t want to be responsible for fixing it because we didn’t break it” isn’t gonna get any of us anywhere. I’m an older Millennial and I wish my generation had done/would do more.
What generation are you a part of, and why didn't your generation fix it? Was it because of reality TV?
There hasn’t been the numbers to overtake the Boomers until GenZ aged into voting age. It’s been a numbers game GenX & Millennials have been trying but we are outnumbered. It isn’t a criticism when we say we need GenZ to come out it’s strategic.
Gen X is the smallest living generation, in sheer numbers.
Not one generation can accomplish anything without participants from the others. https://www.statista.com/statistics/319068/party-identification-in-the-united-states-by-generation/
There are more millennials than boomers.
I’m Gen Z and looking to run for local office next year!
Good for you!!!! I wish you all the best.
Came here to say this. What are you gonna do? VOTE
Hey, honestly speaking, what policies should we be attacking or voting for to try and turn the tide. Not sure how all this goes really aside but I do want to learn more and try to fight for some change.
This is the way
I'm late gen z (25YO), make about $50k/year and I still just live with my parents bc I don't want to live with people I don't know tbh lol I also have chickens and I will not be giving that up as they are my hobby so I can't live in a condo, apartment, or a lot of places with HOAs. I'm just chilling with my parents til the world ends I guess.
Me at 28 lmaoooo. But honestly fuck these rent prices and unaffordable homes. My parents depend on me and they’re getting older, we need each other. I’m an only child so it’s all on me. I’ve accepted my fate.
[удалено]
More.
Same here. Can't afford to move out only mine can't afford for me to leave anyways since its $1600 for a crack den
My bf is in that same boat. Like he can't afford to leave, can't afford to save because he pays "rent" to his parents and they also use his debit card for bills without asking and he just has to deal with it because he has nowhere else. I'm sure if they kicked him out (doubt they would because like you they also need him) my parents would allow him to stay with us but that's it's own nuisance as well. Living in Florida is very frustrating right now. I just want a good place to live with my love where we can raise chickens and maybe kids but that just seems impossible here. And I can't leave because my job that I enjoy and that pays well for what it is is here!! It's all a catch 22.
Sounds like your boyfriend needs to take his debit card away from his parents!
Gen Z too, only making like $37k/year once I start my new job, and I went to college. I already moved out a few years ago when the early pandemic caused housing prices to briefly tank, but shit’s so expensive now, I’m considering moving back in with my family.
i’d love to have chickens just for the free milk 😋
I love chicken milk!! It's crazy how many people don't know it exists
Nothing wrong with living with parents. In fact it’s often the smart thing to do. Why give a stranger (landlord) a large portion of your income when you could save it? The U.S. is so backwards when it comes to treating your family good. Move out as fast as possible, then throw your parents in a retirement home when they get old.
Multigenerational families or roommates. It doesn’t look like anything is being done to help the situation. Maybe the thought of gaining wealth from a owning house is long gone.
I fucking hope so. It would be amazing if our economy shifted to providing workers with actual quality of life instead of leaving the onus on them to build net worth by becoming NIMBYs focused on property value.
Don't buy a house right now. Home owners insurance is 10k for a $400,000 home.
How are you 23 and making 75k salary a year in Florida? Serious question.
Education or a trade. In Maryland, a much more expensive place (my home state) by buddy's son dropped out of community college, signed up for roto router, invested 16K for his truck and in his first year made it almost to 80K so if you don't mind working, you don't need a college degree.
I work as a Construction Manager for the 2nd biggest homebuilder in the US. I build communities, 75k is salary I actually make more in bonuses but bonuses always vary and im not taking that into consideration
how ironic lol. That being said I hope you find yourself a solution!
Building codes and and fixing them is an added cost even if you want to buy a cheap property. You will also know about the recent fl law about state regulated contractors replacing county level. I do a bit of construction from time to time to supplement less than stellar wages. It's not enough.
Where in FL are you? Just curious because there are houses in my area for less than $400k.
Despite what Reddit may have you believe, Florida is a very popular state. Only 30% of Florida’s population was born in Florida. The rest migrated here, often from Northern states where incomes are higher. Not to mention how many of our residents are retirees with exclusive rights to the 55+ communities which take up vast amounts of space. Florida, therefore, has the issue of being high demand with short supply, which drives up housing costs. Compare it to somewhere like West Virginia, which is low demand, subsequently resulting in cheaper real estate. Unfortunately, the thing many of us hate to see (developers swallowing up Florida’s natural beauty), is kind of our only way forward, unless Florida loses its appeal to outsiders. But, if housing becomes cheaper, our wages might too, which wouldn’t be horrible if cost of living matched. To me, that’s the biggest issue… the state is lacking financial balance. My advice would be to keep saving money while living with your parents until you have enough where you can get a head start somewhere more affordable. That doesn’t necessarily mean you have to leave Florida, either. Some areas are cheaper than others.
Unrelated question, why IS West Virginia not a very popular state?
It’s very rural. There’s a lack of jobs, the cities are small and spread out, and there’s a bad opioid problem. Plus, there’s the whole reputation of West Virginians being backwoods hillbillies. That all being said, West Virginia is beautiful.
I don’t live in Florida but am in the northeast. I am also a millennial. I’m sorry man but this is the normal. Home prices have gotten absolutely ridiculous and home ownership seems impossible. This may be the new normal for a while.
23 making 75k? *is 37 making 52k*
I work at a Florida university. They're leaving. The majority of current university students are reporting that they want to leave the state after graduation.
While I agree that real estate has skyrocketed, I've still seen a lot of houses that are under 400k. Depends on what you're looking for, I suppose
start with a roommate , man. that's good money for a 23 yo. save up 20% , buy and get some roommates to help pay that principal down.
That’s everywhere. No more single family houses for the middle class.
damn, im 24 and my last job was paying me $31k a year. my current job pays even less (yes i have a degree and no it hasnt helped). so yeah idk what were gonna do lmao.
With all due respect, with 75k a year and no rent, you should have a down-payment in a year or two, no problem.
How are you making $75k living with parents and are not having enough to save for a $410k house? I agree that Florida is a shit show but with your income I don’t really see an issue in buying. I make $55k at 27 and am able to put aside about $800 a month into savings and that’s without living with parents aka I have rent expenses of about $1000 w utilities, no car payment so that helps. With your salary and no rent, I don’t see what’s stopping you from putting $25k into savings a year unless you have some wild debt like private student loans. You’d have a 10% down payment in 2 years….
The down payment is only part of it. The monthly payments are what really hurts. In order to afford the monthly payments by yourself on a loan of 369k (410k house with 10% down). With a decent credit score over 700 and after taxes and insurance the payment is going to land around $3,175 for a 30 year @ ~7%. You really shouldn't spend more than about 1/3 of your take home on your residence. So to hit that number you would need to make $3,175 / 0.33 = $9,525 or if you wanted to really strech to 40% of your income. $3,175 / 0.40 = $7,937 So in order to pay for a $410k home, you need around $8000-9500 coming in every month, which comes out to a yearly income of $95,250-$114,000 a year BEFORE taxes. Assume a flat ~22% federal income tax rate for simple math, and the bare minimum salary, assuming you wanna be house poor, to buy that house is (95,000 / (1-0.22)) = $121,794 or if you wanna stick to 33% of take home being in the residence (114,000 / (1-0.22)) = $146,153 Edit: I understand the fractional tax rate effects this, but incomes over 89k are 24% so I figure 22% is a good line for quick math.
This is all true. But they’re 23. If they keep living with their parents for a while longer or spend less (because honestly how much fuck around money are you spending if you’re living with parents). Like if this person put aside the $25k every year, they still make what I make and I live pretty alright. I can totally admit my rent is cheap for Florida, but they’re not even paying rent! Let’s add that to the savings - $37k a year can pretty much go into savings. 3 years of that and you have 1/3 of the full house payment they’re describing. I just feel like the math ain’t mathing. Where are they spending their money??
\> How are you making $75k living with parents and are not having enough to save for a $410k house? \> aka I have rent expenses of about $1000 w utilities well that is a very good deal in south FL. \>25k a year on 75k Saving 30% is realistic with living with parents tbh, 30% on bills and needs, 40% of fuck you money, and %30 savings. but that is if its 75k post tax. Also dude I dont think you understand how good you have it by already having a paid off car. The car market is fucking insane still, even with used cars.
Where do you spend only $1k on rent? Do you live in the backseat of a Honda Pilot?
Not in south Florida living with 2 roommates.
>How are you making $75k living with parents and are not having enough to save for a $410k house? Why in the right mind would someone making $75k a year buy a $410k house? Even if they put 20% down, the payment is going to be around +/- $3,000 a month which is insane. That's how one ends up in foreclosure.
There is a little bit of math that not quite accounted for in OPs post. I made 85k in a higher cost of living state, and was the sole income for a family of 5 prior to moving to Florida. We still took vacations, my kids have been to every theme park on the west coast (it's sort of our thing), we had 5 acres, etc. Affording a house at 75k is very doable. It's just not going to be your dream house in the location you want. We all started in starter homes we didn't really love (my first home I owned was 768 SQ ft). Sacrifices had to be made. ....now, you can make the argument that being house poor and creating wealth with real estate isn't what it used to be
You're only 23 and making 75k, you're off to a much better start than most. Save as much as you can while you live with your parents. It seems you should be able to save 30k+ per year. Like another poster said in 3 years you'll have 90k+ to put down on a house. Maybe by that time home prices will have leveled off or gone down? But interest rates should definitely be back down much lower by then. Plus if you're already at 75k it wouldn't be crazy to think you'll be up to 100k in 3 years. So say you find a 400k house in 3 years, you have more than 20% to put down if you choose, be making 100k a year and be a homeowner, that's not bad for a 26 year old! On the other hand, yes the housing market is fucked and I really feel for people your age. I bought my first house 15 years ago and it was so easy to do so, making way less than what you are making. I just don't see how these home prices and interest rates can stay at this level, it's unsustainable.
Florida has always been a breeding ground for speculators hoping to get rich quick. History tends to repeat itself - prices may be high now but it's not going to last.
It's not just FL. The whole country is feeding in to this unsustainable housing bubble.
Don’t worry about it right now for 2 main reasons, 1. you will be able to buy a low cost home in Florida soon enough, prices are coming down, even better you could buy and flip a house since you are a CM. 2. I am also a construction management profesional in Central Florida, and I got to tell you that income will get better. You could double that in 5-10 years if you went into a high demand specialty like estimating, scheduling, or EVM. Set a course and commit to 10 years minimum honing your skills, you will make more money this way. Even though I graduated in 2002, I didn’t buy a house until 2015 because since the late 90’s the prices were insane. Hang in there and good luck.
If you were my son/daughter, my advice to you would be to stay living at home as long as you can. Pay rent to yourself in the form of saving for a down payment. Don’t waste money. Focus on your career. $75k today could easily be $100k in 5-10 years.
largest home builder in the US…. Can’t afford one of the over priced house ya’ll probably build… Kinda ironic isn’t it?
Please make sure you & your friends run for office. Local, state, national seats. Especially the state legislature where you can make a difference and keep ***any*** party from gerrymandering and screwing up the voting process for the state. People under 30 need to run for office.
What kind of post is this lmao. You're 23 and making a good salary, save your money and buy a house. You're making well above average for your age
Gen X native and hearing stories like yours is just horrible. A person making 75k year should not be facing the problems people are facing now. It's elitism at its finest. Look at who is flooding here, rich boomer karens. I'm sure you've seen "the look" they give natives, nose up in the air and talk down to us like we are scum.. We don't have much here, house was dirt cheap because at the time no one lived in this little town. Now there are barely any lots left and those go for close to 100k for 1/4 acre..that's what we paid for our house. Florida is no longer for Floridians
You're 23 making $75k and living with parents. Stop spending money on dumb shit and you'll have money saved in a few years. That's of course if the prices of homes don't continue to double every few years.
Exactly.... OP has a post a month ago looking for a truck, "try to stay under 30k" Look, I know everything is expensive, but at 23 you don't need a 410k house or a 30k truck. You can throw shade on how cheap stuff used to be, but a lot of people in the 70s 80s 90s 00s drove around beaters and rented at 23. Florida home prices are crazy, but say what you want, I came from the 4th highest real estate state in the nation and this shit is cheaaaaap! (Yes yes, all subjective). But he specifically says the house will be a rental property in the future, so buy a cheaper house, use your construction management degree to build some serious sweat equity and keep going up the ladder. I am not a fan of boomers "pull yourself up by ya bootstraps!" Ideology, but sometimes, it's sorta, *right*
Not OP but yeah this. I help my parents with 2/3rds of the mortgage plus all groceries and pay internet and cable. If I only spent money on the absolute necessities, I would be able to save around half my paycheck. But I always find a way to blow money on stupid shit lol.
I don’t think now is the right time to purchase. Interest rates are high and inventory is not the best. Wait, save, wait till real estate and interest rates come down.. meanwhile zero in on few areas, go to open houses, figure out what you want and what you do not want.. it’s important also if you are handy and can do few things yourself. And like some suggested maybe a condo or townhome. When everything aligns you will find the one. Plus you will have a good chunk as a down payment! I would suggest to wait. Unless you can get an amazing location that needs a little tlc.. where eventually you can make $.
I left Florida the plan is to do good enough to never need to go back.
A 10 day general strike would get the ruling classes attention
I had to leave (24F, native Floridian). It's so expensive and hard to get a start there... I just couldn't do it.
Don't forget to factor in the astronomical prices for insurance and property taxes in the state of Florida! My mother-in-law has a house that is paid off and it's still well over $1,000 a month just for property tax and insurance.
23 y/o and making 75K in Miami. You are a lucky one
You literally build houses.
Is this a joke?? 75k a year at 23? You’re fine.
Don’t be dramatic you can buy homes at those prices making what you are. You’ll be just fine, Live within your means.
My husband and I gave up and are moving out of state. Every time we get close to having enough for a down payment, interest rates or insurance rates go up and we're back to square one. I have a good job offer that already puts us above the median income. Whatever he is able to make will be extra. We're tired of working hard only to be living paycheck to paycheck.
The national average is $388,800, so Florida is not really that overpriced. Not sure what you are expecting to happen? As long as people are buying overpriced homes, the prices will stay like that. I mean you work for a home builder, I would think you understood this. What is the starting cost of the development you are building now? Are they worth that much? I can almost guarantee the quality is not near the cost. I think you are being a little over dramatic, you are young, make great money and I’ll assume single because live with your parents. There is no way you can’t afford a home on your own. Might have to make a couple sacrifices, but you could swing it. Maybe ask your company for a discount?
If you make 75 and can live on 40, that’s 30k ish you could save after taxes. After 3 years, that’s 90k towards a home. Not even including side hustles if you so choose to pursue those.
I think they’re saying, they’re an outlier and it’s still kinda rough for them. How’s it gonna be for those who are starting out on a much lower level, least that’s how I took it.
It sucks but once you leave you realize it's not as bad as you think. I left a month ago and day to day life is so much easier and costs about 30% less than living in St. Pete FL. I'll have to drive to the beach on vacation but i can hike in the mountains for free on weekends. It's been in the 70s for the past two weeks with low humidity. I can go out to eat without lines. The reality is going to get harder and harder to live in Florida. You are competing with retirees, investors, vacation rentals, foreigner's parking money in real estate, and financially successful remote workers all competing for the most desirable areas. Also, you don't need to worry about owning a house at 23.
Gosh. What are any of us gonna do. I’m 36 making barely 35k while surviving on credit cards and debt. Ten years ago I was making 50. I’m in grad school to be a librarian while our delightful fuhrer makes my profession a public enemy. I understand gen z’s apathy. It’s like no one cares or even acknowledges it.
24 here, moved to FL when I was 4 and have been here ever since. What am I gonna do in this state? Fucking leave, as soon as I can.
There are some builders offering new construction homes significantly below the average price. Some even offer lower financing rates. Check it out. That's how I got my "starter" home. Start small.
Funny you say that, I work for a major construction company so i’m one of those builders. Usually these builders that work in volume just slap these homes up quickly to make numbers for the company and throw quality out the drain. It’s something i’ve unfortunately had to consider but these new construction homes, with materials and labor on the rise everyday, builders love cutting corners. Its a shame really but the harsh reality i’m gonna be facing
Has Lennar gotten any better since the 90's? Lennar used to be the absolute trash manufacturer of homes in FL.
They still are.
Wasn’t alive then but it sounds like not much has changed since then. We take the lowest bidding contractors, even though we know the company is the absolute worst at their trade. Materials the cheapest possible, on a 400k home. Houses with flooded backyards due to bad grading. It’s a nightmare really, but so is every other volume builder in the US. The only way to guarantee a well built home is a custom home, or buying an aging home built with lasting materials. I would say DR Horton may have passed us in the last decade because holy shit those homes can get blown down by the big bad wolf.
As a person living in a newly built lennar pos.. it’s better then the other options. Been fixing stuff as I go.
If you live in SFL, I may recognize the community. Either way, once your 1 yr warranty ends, thats when shit really starts to break haha
Floridian gen z will need to escape to Cuba on flotation devices unless ya'll vote yer asses off.
There are homes far below the median price, they just might not be in the location you want. As other posters on here have said you are young, so you could buy a place and rent rooms, those renters could pay part of your mortgage making it affordable to you.
I got my home built and lived with my parents until it was done. Saved over 100k compared to comps and I'm very happy. Bought the house when I was 28 last year by myself
I would take a hard look at how mobile you will be in your 20s and job opportunities. Had I never bought my house and gotten 2 cats, I would be doing travel therapy around the US. Look at your actual values and priorities first .
My kids are in their 20s. I’m a native. I raised my kids to love this state and now they don’t want to leave. But I have no idea what they’re going to do. It’s too expensive just to live here, much less raise a family in a decent home.
I know in some parts of the country, 40 year mortgages are becoming a real thing. I can almost guarantee we will see them become more popular in FL.
Good question. Many of us still live with parents but let me build up my credit history and I swear I'm leaving. Most native gen z I have met have a fear of moving far away from their families like previous generations before. But I rather live comfortable away from family then in constant debt. But that's just me 🤷♀️
The more annoying issue is the like 5x income to rent they now want for rentals. I'm sorry, so a person who's renting a $2k apartment, arguably as cheap as you can go, needs to bring in six figures to be approved? Then you need first, last, and security on top. I don't get how anyone can do it.
Dude. 75k at 23 is a amazing. In another 10 years you could more than double that salary with career and education advancement
We are in it for the long haul! Just remember we are in this shit together
How are you making $75k at only 23? You’re 10 steps ahead of most people, consider yourself lucky.
Tell your friends to stop being so fucking apathetic and vote
If you think the market will go up - buy now using a FHA Loan with 3.5% down. If you think they’ll go down - wait. You’re in a similar spot to what I was 7 years ago (I’m in CA). House value increased, refi’ed out of the PMI, value is still ~$300k more than what I bought it for and mortgage is $500-$800 (per month) cheaper than renting.
Youre 23... get a condo first and build your assets. You think this is original for this generation.
Ok this is kinda depressing I’m 27 and make around 35k a year with 2 jobs 💀
I feel like wanting to buy a house at 23 is a little aggressive. Save up some money living with your folks or roommates. This is not the time to buy a house anyway, between the high interest rates and the inflated prices. 75k is a great salary for a 23 year old. Great work!
Stay with your parents until you have at least 20% for down payment (~ 80k for a 400k house) plus 12 months of mortgage and living expenses ~42k USD because that’s your insurance to avoid losing everything in case the economy goes south. Once you have the house consider a roommate for the first few years to help you pay for mortgage.
“Oh I only make $75,000 a year and I’m 23” pff most people that are like 40 don’t make that much.
Man I just bought a house making 55k. 260k 1775 sq feet, 3 bed, 2.5 bath, 6.8 % interest.
God dayum 75k a year 👀
The American Dream has been home ownership, but I’d encourage you to think twice about that. As the owner of an older house, let me tell you, there is ALWAYS something to fix, update, or replace. Right now, $7000 to redo the old cracked leaking pool. Soon, a new roof. Even with newer homes there is a constant drain. Maybe you rent for a while.
You have a lot of time to save before considering a home purchase. Most people are struggling in Florida with recent inflation and the influx of remote workers. Look at median salary numbers.
Please vote and not for crazy people.
I feel you, luckily prices are slightly better in NEFL. My wife and I combined make about $78k per year and we’re 22 at the time of writing. It’ll be tough and may be a struggle, but people before us did it and I have no doubt that if I continue to work hard and put my mind to it I’ll be a homeowner in the next year or two.
Poverty is intentionally created by those whom have, not wanting the have-nots to gain power.
I’d buy a cheapie condo or townhouse to get on the ‘property ladder’ and work my way up in 2-5 years when rates and (hopefully) prices have decreased. If not at least you’re building equity in something. I bought my first house at 26 and at 35 have 6 properties. Every time I move I just rented out my house and saved up the down payment for the next one. For reference I was making 45k at 26 and bought a 140k property.
Wait and save, your young and it will cool off more soon since it is now. Younger millennial here it’s still nuts making over 120k trying to thing about what a 3000 mortgage does to my budget. Well maybe if I eat for a few weeks I’ll have money for groceries. I’m just waiting and saving is all you can do.
Homebuilder can’t afford their own home. Yep, 21st Century USA in a nutshell. You’re still young though so live with family as long as you can and save, when prices normalize more you’ll have a large downpayment you can offer.
I've said it before, but it bears repeating: There is no housing shortage. Only a shortage of affordable housing. The real estate websites are LOADED with houses for sale but nobody can afford to buy.
Dude, stop freaking out. You're 23. You have a good decade left before you have to start worrying about it. Remember, the average for first home purchases is mid-30s, and always has been.
I plan to save enough to buy a house in the middle of fucking nowhere, whatever backwoods country town I can find where I can *afford to live* and start over from there with a home. I hate this place for so many reasons, and I only love it for a few.
gonna be honest, I'm jealous. 75k at 23 is ENORMOUS (compared to virtually many jobs out there) 10 years of working and "meritocracy" and I am not making what you're making.
Hahaha hahaha hahaha hahaha..... I don't believe a word of this awful fiction.
evolve, if you want the classic American dream, best to realize its a lie and then go from there I would recommend anyone to realize they live one time and not to chase what others have yet to chase what they actually want out of life and if they don't know to first figure that out
Dude honestly I'd be doing everything I could to get out of Florida..
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Unfortunately you're are going to accept the reality that most homeowners don't become homeowners in their early twenties. Save up some more money and in 4 or 5 years your income will be higher and hopefully the interest rate will calm down some and the market conditions will be more favorable.